Disallowance u/s 14A deleted as interest free own funds exceeded investment: ITAT Mumbai

Bank of Nova Scotia Vs Assistant Director of Income Tax (ITAT Mumbai)

ITAT Mumbai held that disallowance made u/s. 14A of the Income Tax Act read with rule 8D deleted as tax free funds were more than investment made on which exempt income was earned.

Facts- During the course of assessment, AO noticed that assessee has earned interest income of Rs.2,77,57,534/- from 1997- 1998 series of NABARD Bonds which has been claimed as exempt from income tax u/s 10(15) (iv) (h) of the Act. After referring the tax

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